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McClatchy Files Form 10-K and Reports Final Results for 2008

Posted on: Monday, 2 March 2009, 20:20 CST

Reports additional loss from discontinued operations

SACRAMENTO, Calif., March 2 /PRNewswire-FirstCall/ -- The McClatchy Company (NYSE: MNI) today reported that it filed its Annual Report on Form 10-K for the year ended December 28, 2008 (the Report) with the Securities and Exchange Commission (SEC), which includes its final fourth quarter and full year 2008 results. The company's fourth quarter 2008 after-tax loss from continuing operations was unchanged from the previously reported $20.4 million, or $0.25 per share. The company's total net loss, including the results of discontinued operations, was $27.0 million, or $0.33 per share.

The income from continuing operations for full year 2008 was unchanged from the $2.8 million or $0.03 per share previously reported. The company's total net loss, including the results of discontinued operations, was $4.0 million, or $0.08 per share.

In early 2009 various newspapers formerly owned by the Company filed for bankruptcy under Chapter 11 of the Bankruptcy Code. Certain amounts owed to the Company by these former newspapers may no longer be collectible and as a result, the Company has recorded reserves related to such amounts, net of taxes, of $5.3 million in discontinued operations.

The unaudited consolidated statement of income for the 2008 fourth quarter and full year is attached to this release.

About McClatchy

The McClatchy Company is the third largest newspaper company in the United States, with 30 daily newspapers, approximately 50 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which extend its audience reach. The websites offer users information, comprehensive news, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, The Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The News & Observer (Raleigh).

McClatchy also has a portfolio of premium digital assets. McClatchy owns 14.4% of CareerBuilder, the nation's largest online job site, and owns 25.6% of Classified Ventures, a newspaper industry partnership that offers two of the nation's premier classified websites: the auto website, cars.com, and the rental site, apartments.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.

Additional Information:

Statements in this press release regarding future financial and operating results, including revenues, anticipated savings from cost reduction efforts, future dividend payments, cash flows, debt levels, as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the duration and depth of the economic recession may reduce its income and cash flow greater than expected; McClatchy may not generate cash from operations, or otherwise, necessary to reduce debt or meet its debt covenants as expected; McClatchy may not consummate contemplated transactions to enable debt reduction on anticipated terms or at all; McClatchy may not achieve its expense reduction targets or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; McClatchy's expense and income levels could be adversely affected by changes in the cost of newsprint and McClatchy's operations could be negatively affected by any deterioration in its labor relations, bankruptcies or financial strain of its major advertising customers; McClatchy's ability to achieve and maintain compliance with NYSE listing standards or commencement by the NYSE of suspension and delisting procedures if McClatchy fails to implement successfully a plan to correct non-compliance with the NYSE listing standards; payments may be required related to certain guarantees included in agreements with the Pension Benefit Guaranty Corporation; as well as the other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 28, 2008, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward-looking information contained in this release.

***THE McCLATCHY COMPANY*** CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (In thousands, except per share amounts) Three Months Ended Year Ended ------------------ ---------- December December December December 28, 2008 30, 2007 28, 2008 30, 2007 ------- ------- ------- ------- REVENUES - NET: Advertising $388,298 $489,405 $1,568,766 $1,911,722 Circulation 66,974 66,076 265,584 275,658 Other 15,598 17,953 66,106 72,983 ------ ------ ------ ------ 470,870 573,434 1,900,456 2,260,363 OPERATING EXPENSES: Compensation 175,000 222,372 822,771 911,964 Newsprint and supplements 66,137 66,431 252,599 277,634 Depreciation and amortization 34,438 36,119 142,948 148,559 Other operating expenses 115,216 124,932 460,973 496,112 Goodwill and newspaper masthead impairment 59,563 1,557,456 59,563 2,992,046 ------ --------- ------ --------- 450,354 2,007,310 1,738,854 4,826,315 OPERATING INCOME (LOSS) 20,516 (1,433,876) 161,602 (2,565,952) NON-OPERATING (EXPENSES) INCOME: Interest expense (41,245) (46,392) (157,385) (197,997) Interest income 97 114 1,429 243 Equity gain (losses) in unconsolidated companies, net 319 (8,300) (14,021) (36,899) Gain on sale of SP Newsprint (129) - 34,417 - Gain on extinguishment of debt 1,346 - 21,026 - Write-down of investments and land held for sale (1,964) - (26,462) (84,568) Other - net 359 539 1,479 1,982 ------ ------ ------ ------ (41,217) (54,039) (139,517) (317,239) INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAX PROVISION (BENEFIT) (20,701) (1,487,915) 22,085 (2,883,191) INCOME TAX PROVISION (BENEFIT) (283) (57,449) 19,278 (156,582) ------ ------- ------ -------- INCOME (LOSS) FROM CONTINUING OPERATIONS (20,418) (1,430,466) 2,807 (2,726,609) LOSS FROM DISCONTINUED OPERATIONS - NET OF INCOME TAXES (6,583) (3,080) (6,758) (9,404) ------ ------ ------ ------ NET LOSS $(27,001) $(1,433,546) $(3,951) $(2,736,013) ======== =========== ======= =========== NET INCOME (LOSS) PER COMMON SHARE: Basic: Income (loss) from continuing operations $(0.25) $(17.42) $0.03 $(33.26) Loss from discontinued operations $(0.08) $(0.04) $(0.08) $(0.11) Net loss per share $(0.33) $(17.46) $(0.05) $(33.37) Diluted: Income (loss) from continuing operations $(0.25) $(17.42) $0.03 $(33.26) Loss from discontinued operations $(0.08) $(0.04) $(0.08) $(0.11) Net loss per share $(0.33) $(17.46) $(0.05) $(33.37) WEIGHTED AVERAGE NUMBER OF COMMON SHARES: Basic 82,511 82,097 82,333 82,000 Diluted 82,511 82,097 82,409 82,000

SOURCE McClatchy Company

Source: PR Newswire

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